The two "things" TwoWay databinding and ObservableCollection are different things which can collaborate, but are not directly linked. Databinding is a concept and ObservableCollection is an implementation of an interface (INotifyCollectionChanged) which is used in the implementation of the concept of databinding in the .NET framework. In itself, INotifyCollectionChanged is a small part of this implementation.
In fact you can use TwoWay databinding without ObservableCollections and ObservableCollections without databinding.
Databinding is a mecanism allowing you to bind a business object property (Often a ViewModel property) to an UI property. OneWay Databinding provides support for update of UI when the object is changed (which requires implementation of INotifyPropertyChanged and/or INotifyCollectionChanged on the business object). TwoWay Databinding provides twoway support as its name suggest it: Object => UI (like OneWay do) AND UI => Object. UI to Object updates does not requires implementation of INotifyCollectionChanged nor INotifyPropertyChanged.
Observable collection now is interesting because it implements INotifyCollectionChanged, which makes it a good candidate to create databindable collections. But I use often INotifyCollectionChanged without databinding, and I am pretty sure you can find other collections which implement INotifyCollectionChanged (like PagedCollectionView)
Does it answer your question?